BXMT Butterfly Strategy
BXMT (Blackstone Mortgage Trust, Inc.), in the Real Estate sector, (REIT - Mortgage industry), listed on NYSE.
Blackstone Mortgage Trust, Inc. (BXMT) functions as a real estate finance entity, primarily engaged in originating senior-level debt secured by commercial properties. These investment activities span across North America, Europe, and Australia. For U.S. federal income tax considerations, the company is organized as a Real Estate Investment Trust (REIT). This structure generally exempts it from federal corporate income taxes, contingent on distributing at least 90% of its taxable earnings to its shareholders. The firm adopted its current name, Blackstone Mortgage Trust, Inc., in May 2013, having previously operated as Capital Trust, Inc. Established in 1997, its principal office is located in New York City.
BXMT (Blackstone Mortgage Trust, Inc.) trades in the Real Estate sector, specifically REIT - Mortgage, with a market capitalization of approximately $2.41B, a trailing P/E of 156.29, a beta of 0.95 versus the broader market, a 52-week range of 13.73-20.67, average daily share volume of 1.7M, a public-listing history dating back to 1980. These structural characteristics shape how BXMT stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 0.95 places BXMT roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. The trailing P/E of 156.29 is on the rich side, which tends to correlate with higher earnings-window IV expansion as the market debates whether forward growth supports the multiple. BXMT pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a butterfly on BXMT?
A long call butterfly buys one lower-strike call, sells two ATM calls, and buys one higher-strike call, paying a small net debit for a defined-risk position that maxes out if the underlying pins the middle strike at expiration.
BXMT snapshot
As of August 14, 2026, spot at $14.49, ATM IV 24.40%, IV rank 4.78%, expected move 7.00%. The butterfly on BXMT below is built from the August 14, 2026 end-of-day chain, with strikes snapped to listed contracts and premiums pulled from the bid/ask midpoint at a 63-day expiry.
Why this butterfly structure on BXMT specifically: BXMT IV at 24.40% is on the cheap side of its 1-year range, which favors premium-buying structures like a BXMT butterfly, with a market-implied 1-standard-deviation move of approximately 7.00% (roughly $1.01 on the underlying). The 63-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated BXMT expiries trade a higher absolute premium for lower per-day decay. Position sizing on BXMT should anchor to the underlying notional of $14.49 per share and to the trader's directional view on BXMT stock.
BXMT butterfly setup
The BXMT butterfly below is built from the August 14, 2026 end-of-day chain, with each option leg priced at the bid/ask midpoint of its listed strike. With BXMT at $14.49 on that close, the first option leg uses a $14.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed BXMT chain at a 63-day expiry; the cross-strike IV skew is reflected directly in the per-leg values rather than approximated. Quantity sizing assumes one contract per option leg (or 100 BXMT shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $14.00 | $0.83 |
| Sell 2 | Call | $14.00 | $0.83 |
| Buy 1 | Call | $15.00 | $0.33 |
BXMT butterfly risk and reward
- Net Premium / Debit
- +$50.00
- Max Profit (per contract)
- $50.00
- Max Loss (per contract)
- -$50.00
- Breakeven(s)
- $14.50
- Risk / Reward Ratio
- 1.000
Max profit equals the wing width minus net debit times 100 (reached when the underlying pins the middle strike); max loss equals the net debit times 100. Two breakevens at lower-wing plus debit and upper-wing minus debit.
BXMT butterfly payoff curve
Modeled P&L at expiration across a range of underlying prices for the butterfly on BXMT. Each row is one sampled price point from the computed payoff curve; the full curve uses 200 price points internally before being summarized into 10 rows here.
| Underlying Price | % From Spot | P&L at Expiration |
|---|---|---|
| $0.01 | -99.9% | +$50.00 |
| $3.21 | -77.8% | +$50.00 |
| $6.42 | -55.7% | +$50.00 |
| $9.62 | -33.6% | +$50.00 |
| $12.82 | -11.5% | +$50.00 |
| $16.02 | +10.6% | -$50.00 |
| $19.23 | +32.7% | -$50.00 |
| $22.43 | +54.8% | -$50.00 |
| $25.63 | +76.9% | -$50.00 |
| $28.83 | +99.0% | -$50.00 |
When traders use butterfly on BXMT
Butterflies on BXMT are pinning bets - traders use them when they expect BXMT to settle near a specific level at expiration (often the prior close, a round number, or the max-pain strike) and want defined-risk exposure to that outcome.
BXMT thesis for this butterfly
The market-implied 1-standard-deviation range for BXMT extends from approximately $13.48 on the downside to $15.50 on the upside. A BXMT long call butterfly is a pinning play: it pays maximum at the middle strike if BXMT settles there at expiration, with the wing legs capping both the cost and the maximum loss to the net debit. Current BXMT IV rank near 4.78% sits in the lower third of its 1-year distribution, where IV often re-expands toward the mean; this favors premium-buying structures and disadvantages premium-selling structures on BXMT at 24.40%. As a Real Estate name, BXMT options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to BXMT-specific events.
BXMT butterfly positions are structurally neutral / pin (limited-risk, limited-reward); the modeled P&L assumes European-style exercise at expiration and ignores early assignment, transaction costs, dividends paid before expiry on the stock leg (when present), and the bid-ask spread on the listed chain. BXMT positions also carry Real Estate sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move BXMT alongside the broader basket even when BXMT-specific fundamentals are unchanged. Always rebuild the position from current BXMT chain quotes before placing a trade.
Frequently asked questions
- What is a butterfly on BXMT?
- A butterfly on BXMT is the butterfly strategy applied to BXMT (stock). The strategy is structurally neutral / pin (limited-risk, limited-reward): A long call butterfly buys one lower-strike call, sells two ATM calls, and buys one higher-strike call, paying a small net debit for a defined-risk position that maxes out if the underlying pins the middle strike at expiration. With BXMT stock at $14.49 on the August 14, 2026 close, the strikes shown on this page are snapped to the nearest listed BXMT chain strike and the premiums come straight from that session's bid/ask midpoint.
- How are BXMT butterfly max profit and max loss calculated?
- Max profit equals the wing width minus net debit times 100 (reached when the underlying pins the middle strike); max loss equals the net debit times 100. Two breakevens at lower-wing plus debit and upper-wing minus debit. For the BXMT butterfly priced from the August 14, 2026 end-of-day chain at a 30-day expiry (ATM IV 24.40%), the computed maximum profit is $50.00 per contract and the computed maximum loss is -$50.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a BXMT butterfly?
- The breakeven for the BXMT butterfly priced on this page is roughly $14.50 at expiration, derived from the August 14, 2026 end-of-day chain's premiums. Breakeven is the underlying price at which the strategy's P&L crosses zero ignoring transaction costs and assignment risk. The BXMT market-implied 1-standard-deviation expected move in the same options snapshot is approximately 7.00%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a butterfly on BXMT?
- Butterflies on BXMT are pinning bets - traders use them when they expect BXMT to settle near a specific level at expiration (often the prior close, a round number, or the max-pain strike) and want defined-risk exposure to that outcome.
- How does current BXMT implied volatility affect this butterfly?
- BXMT ATM IV is at 24.40% with IV rank near 4.78%, which is on the low end of its 1-year range. Premium-buying structures (long call, long put, debit spreads) are relatively cheap in this regime; premium-selling structures collect less credit per unit risk.